Looks Like the goverment is going to put most of us Out Of Bussiness

[just_sawing]

With The new Health Care bill it appears that part of it is that every purchase $400.00 has to generate a 1099 to the goverment. When did buying logs make a paper work night mare. It isn't worth it if they keep this in the Bill as wrote.

[fishpharmer]

When does that go into effect?  Or had it been in existence before the health care bill?

Not that I buy logs, but it can affect all manner of small business.

[stormyweatherman]

i haven't heard about that.  does anyone have any more intel on that one? :P

[jeffreythree]

I train accounting office employees in car dealerships on our dealership management software as a day job.  1099's already had to be submitted by these dealers for any yearly total over $600 to an individual vendor(ex. outside detailer or penstriper).  I looked up the changes since it will definitely affect me, and it looks like if anyone pays anybody else for goods more than $600 starting in 2012 a 1099 will be needed.  For me that means dealerships would have to issue 1099s for goods as well as services.  For a sawmill, it means anybody that buys more than $600 worth of wood or milling services will need to send in a 1099 reporting your services or goods and sending one in reporting, oh say Woodmizer, for the total dollars of blades you may have bought for they year from them.   Still just a yearly total if more than $600 and one per entity, but now all individuals and business must do it for all yearly totals.  Starts in 2012.  Sounds like a good question for a CPA to see the real effects.  Thanks for the heads up however it turns out.

http://money.cnn.com/2010/05/05/smallbusiness/1099_health_care_tax_change/

http://www.accountingweb.com/topic/tax/costly-changes-1099-reporting-health-care-bill

[stormyweatherman]

wow man!   no public debate.  they used to call that taxation without representation. :P  i hope people are keeping informed and getting this information out there.  this country is in a lot of trouble. 

excerpt from first website http://money.cnn.com/2010/05/05/smallbusiness/1099_health_care_tax_change/

Section 9006 of the health care bill -- just a few lines buried in the 2,409-page document -- mandates that beginning in 2012 all companies will have to issue 1099 tax forms not just to contract workers but to any individual or corporation from which they buy more than $600 in goods or services in a tax year.  The stealth change radically alters the nature of 1099s and means businesses will have to issue millions of new tax documents each year.

Right now, the IRS Form 1099 is used to document income for individual workers other than wages and salaries. Freelancers receive them each year from their clients, and businesses issue them to the independent contractors they hire.

But under the new rules, if a freelance designer buys a new iMac from the Apple Store, they'll have to send Apple a 1099. A laundromat that buys soap each week from a local distributor will have to send the supplier a 1099 at the end of the year tallying up their purchases.

The bill makes two key changes to how 1099s are used. First, it expands their scope by using them to track payments not only for services but also for tangible goods. Plus, it requires that 1099s be issued not just to individuals, but also to corporations.

Taken together, the two seemingly small changes will require millions of additional forms to be sent out.

Here's some information about another law that was passed in America a few years back:
The British Parliament passed the Tea Act on May 10, 1773. This allowed the British East India Company to trade Chinese tea directly from China to America to completely avoid paying high duties. This undercut the prices offered by colonial merchants and therefore infuriated them. Samuel Adams called for a series of protests and meetings once the first East India Company Ships arrived in Boston. Governor Thomas Hutchinson struggled against the Sons of Liberty to have the ships anchor in the harbor. The more meetings held by Samuel Adams, the more people attended; the meetings attendance numbered into the thousands.

Read more at Suite101: Samuel Adams and The Boston Tea Party: Organizion of the Sons of Liberty and His Role in Independence http://colonial-america.suite101.com/article.cfm/samuel_adams_and_the_boston_tea_party#ixzz0uvwyo4HL

[pigman]

As a farmer and sawmill operator I have been sending 1099's and receiving them for several years, but as stated above, they were only for services, not goods and only to non corporations. I am just glad I am going out of business.
Over the years I have noticed that other farmers send me 1099's for services I have provided worth more than $600 but corporations and rich business owners never send 1099's to me when they pay me more than $600 for services. :

[Peder McElroy]

Vote the BUMS out!!!!!!!!!! We don't need anymore Taxes enough is enough. Stop the runaway Goverment SPENDING.

[jtbartlett]

What's that have to do with the price of tea in China? Not much. The tea was coming from India.  The tarriffs on the direct shipments from India were lower than coming from England. I like Tea. I like lower taxes. You might ask where's the rub? Well, I'll tell ya. The local merchants like selling you and me tea at higher prices making their own pockets heavier. That doesn't help you or me out does it?  It's good for the guy doing the selling...not so good for the guy doing the buying.  I am more often than not a guy doing the buying.  Samual Adams was born with a silver spoon, much like many of our founding fathers. He also lost his fortune...as a failed merchant.  It's a great story, but it has absolutely nothing to do with raising taxes.

As far as 1099's go? Cash is always king.

[stormyweatherman]

i was more concerned that the new tax law on 1099's is buried in a 2700 page health care law!  to my mind, that is taxation without representation.  no public debate on a law that will affect millions of businesses and private individuals.  the reference to sam adams was more about the sons of liberty and the american reaction to a series of laws passed by the British parliament that saddled many Americans (not just the more well-to-do) with unfair tax burdens and unreasonable economic constraints. 

there was fairly broad-based support for the American revolution.  the British had everyone under their yolks one way or another up until that point, regardless of where they were in the economic food chain.  its also true that the more wealthy founders, in spite of their wealth, took great pains to protect the 'general population' from unreasonable intrusions and repressive measures that threatened their freedom.  the bill of rights and lots of provisions in the constituton come to mind.  i don't think they did that purely out of self interest.  so the silver spoon argument only holds so much water for me.  though i understand your point about the price of tea in china ;D 

[jtbartlett]

I guess I don't understand how 1099's are additional taxes. Everyone is already reporting their income to the IRS.....right? Since you're working on a per job basis you're already required to report your income and submit due taxes. Isn't this topic more about taxes you'd just rather not pay? Tax rates haven't changed at all. Public debate isn't necessary to enforce laws that are already on the books.  Am I just missing your point?

[Dan_Shade]

it is more paperwork, and time spent doing paperwork = opportunity cost of doign something else.

It's absurd.

[stormyweatherman]

forgive me.  i have "o pine d".  i thought i better use that word to remind me that i'm on the forestry forum and not a political blog.   ;D

strictly speaking you are right.  its not a new tax per se.  my point is broader than that and i wasn't trying to be misleading.  Congress manipulates the tax codes and means for reporting revenues to the goverment continually.  to the point that most people have no idea how much they are being taxed, or how many times their income is being taxed by multiple levels of government.  but Congress does all this without sufficient knowledge or participation on the part of the American people.  burying this particular modification in the health care law is part of what i'm trying to point out.  tax codes, tax law enforcement, new taxes are all potentially onerous to the economy and to citizens.  there should be much greater transparency in this than there is.  they're also simply regulating small business to death.

i would actually also disagree at some point with the idea that local merchants selling tea (or something else) at a higher price is categorically bad for consumers.  if local economic enterprise creates and keeps jobs in the U.S. rather than sending them overseas, then i might pay a little more.  government used to help out here also, by providing some price protection through duties on imports.  too much of this is bad--granted.  but total absence of it creates a giant sucking sound in the american labor markets. 

in the end, its hard to buy anything if you don't have any money because you don't have a job or a business anymore.  if you want to compete with the average chinese, mexican, indian, vietnamese, etc. laborer in the job market, then you can be pretty confident that the past 25 years of American foreign, domestic and economic policy have brought the United States closer to that reality.  and it hasn't been all that great for the American people.  or those folks, who the soon to be hansomely rewarded and also unemployed, BP exec referred to as the little people.  its the big international corporations that are winning at this game.  but what happens to them and governments who live off of tax revenues, when they've driven labor costs low enough that nobody can afford to buy anything.  that's exactly what happened in the 1920s before the market crash and great depression.  demand slacked because working folks didn't make enough to support a consumer economy.  and the whole thing started to unravel.

[stormyweatherman]

and it was chairman svanberg, not hayward that referred to bp caring about the small people.  the one that looks like darth vader!  sorry, i'm a little scorched from sealing a 250 foot driveway today. 

its just that i see and know a lot of working people like myself (many of them are customers too), and we're out busting our humps to make an honest living.  i'm reading about it on this forum too.  more and more i see the government getting in the way for their own gain or their constituents (and that isn't us as far as i'm concerned).  but we're required to write the check for it nonetheless.  and our kids and grandkids have lost a lot of opportunity and freedom. :(

[Ron Wenrich]

I think the provision is for cash sales.  If you use a credit card, then those 1099s go away.  I don't understand why, but I believe that's the way its stated.

That tax law was dreamed up a long time ago.  They think it will bring in another $300-400 billion in taxes.  They were just looking for a bill to put it into, and the health care bill was the ticket. 

I've heard it said that taxation with representation isn't everything its cracked up to be.   :D

[jtbartlett]

I hear, and agree with much of what has been posted above, except for the misconceptions that we are going to be put out of business because we are (still) required to pay taxes on income we make.  There is no new tax so the issue is a non starter. Some folks find the paperwork to be time consuming but there's no getting around that.  I drop off my slips quarterly and the nice people who file my taxes take care of the rest. It's cheaper, faster and easier for me. I'm guessing it will probably cost me a few more stamps but I think I can handle it.  $300-400B isn't new taxes being raised anyways. It's simply taxes owed on income that is not being reported.

46% of Americans do not pay federal or state taxes.  That's almost half of the people you see walking around every day.  How's that grab ya?

As far as competing with Taiwan, Vietnam, China, Malaysia and other countries who produce  goods to be sold in the American market? BUY AMERICAN. Made in the USA. Is it protectionist? You're *DanG well right it is. Every single dollar that leaves this country further weakens our economy. If you can't find goods not made in the USA, maybe you don't need them.  Vote with your dollars, it's the only real vote you have anyways.

Back on topic... I built my bandmill because I'm too cheap to buy one. I don't do a lot of stimulating the economy when I can avoid it.  Don't sweat the 1099 reporting. It doesn't change a penny what you pay in taxes.

[JSNH]

If I buy a car it is with taxed money. When I trade it in in 2012 with the trade in I receive I will get a 1099 as additional income and be taxed again. If it works this way it will kill car sales but it will also wake up many Americans.

[pigman]

JSHN, you only have to pay income taxes on the profit of the sale . I kind of doubt that you will be selling that car at a profit.

[Randy88]

Maybe we shold all vote next time and be sure to vote for those that will actually READ the bills before they vote on them.  I'm not real sure but I can't help but think if they were to vote on a salary decrease for all government officials they would read that.    

As far as not changing anything you pay in taxes, really, I find that interesting, all these years of doing 1099's and getting them 2-4 months late and on top of that some twit that typed them up typed in the wrong amount and that triggered an audit so I had to spend more time in an audit and also more paperwork to fill out not to mention the lost income due to sitting in an audit and hiring my taxperson to help with the audit to provide clear documentation the mistake didn't come from me.   Not sure what world your living in but my reality is seeing a lot more paperwork, thus potentials for mistakes and more opertunity to deal with those mistakes just so the government can keep closer eyes on everyone and the catagory for tax preparation and legal fees on my tax return looks like its going to get a larger dollar amount in the column, and if it came out of my pocket I do consider it a cost FOR taxes and I really don't care who cashes the check.    Its nice to know someone out there has things go their way and others don't make mistakes that cost them money but I've found over the years "if its expensive and going to happen to someone its going to be me" and it always costs me more.    The paperwork just needs to be done and you can't get around that, I've got a better idea, since its not going to cost any more for us then why do we need to do it at all??   Any time spent on unnecessary paperwork is time I could spend doing something that does make me money or I do enjoy.

[ely]

whats worse on the country as a whole? the small timers that avoid taxes, or the rich folks that beat the country out of taxes all together.

i dont want to do any paperwork. let alone more paperwork.

[Hoss]

We ain't seen nothing yet. Wait until the government's debt commission recommends a value added tax (federal sales tax). They will say we need it to bring down the national debt but why not just stop spending like a drunken sailor. (I appologize in advance to the sailors in the crowd---if I remember correctly some of my fondest times were spent drinking with sailors.) The value added tax (VAT) will be added to everything we buy and everything we sell. I can't hardly wait to get the VAT returns in the mail, fill them out every month, and send the government the money I have collected for them. I will then be able to add tax collector to my employment resume. Ya got to love where our country is headed.
Hoss

[red oaks lumber]

one of you said cash is king.. thats why the 1099 to capture the money going under the table, also the govment wants to do away with cash, so they can capture all sales. they know they are lossing out on millions if not billions of tax dollars.
far as the 1099 form goes, most companys are already using them. if you send me one at the end of the year you are just giving me the heads up that you are using me as an expense, so i should report it also.

[Randy88]

Isn't " change" wonderfull, have you hugged your politician today?   Can't wait to see whats next on the adjenda for the  "change" thing we've been promised.

[Dan_Shade]

I think the best change that could happen is to replace all the members of congress.

slim chance of that happening.

[LeeB]

Yeh budy, I used to have some money, now I'm just trying to scrape up my change.  >:(

[Randy88]

I'd have to agree but by then they'll have all they want in place and it'll take decades to undo whats been done so in the meantime we can live with the mess.   The change for the 1099's is nothing compared to whats coming in the next few years.   Isn't it grand we've fought communism and fashism and socalism for centuries to end up voting it into office here, and thats called progress.   

[robnrob2]

Well My 2 cents here,,
I runs a small buisness too, I operate a woodworking shop, where entertainment centers and wall units are made,  furniture, etc, I also operate my sawmill, and I sell some of my southern woods as well as I buy from my distributor and resell  kiln dried appalachian hardwoods, infact some of ya'll may have milled.
But all that said, yes at the end of each month I do my paperwork,, and I waste/spend time doing that, but when it  comes to the years end when I file my federal tax's   I calculate the time spent/wasted on  my gathering this tax return paperwork/info at $50 an hour and it goes right into the cost  with my cpa's cost, and is deducted,,, am I posta gather and keep all the governments wanted info for free?   Not here. They want the return they gotta pay for it in my time spent. Additional 1099's also.

[Raider Bill]

All we can do about this mess is...........

[John S]

Hopefully America is waking up as indicated by these posts.  I joined the local Tea Party, vote on November 2.
John

PS: Will pick up my new LT40HDG28 from Marty tomorrow.

[terrifictimbersllc]

but when it  comes to the years end when I file my federal tax's   I calculate the time spent/wasted on  my gathering this tax return paperwork/info at $50 an hour and it goes right into the cost  with my cpa's cost, and is deducted,,, am I posta gather and keep all the governments wanted info for free?   Not here. They want the return they gotta pay for it in my time spent. Additional 1099's also.

According to the IRS he value of your own time is not a deductible business expense (if you want I can look it up for you).

[jimparamedic]

So it all comes down to the rich get richer and the poor get poorer. We will either be the have or we will be the have not.

[logwalker]

but when it  comes to the years end when I file my federal tax's   I calculate the time spent/wasted on  my gathering this tax return paperwork/info at $50 an hour and it goes right into the cost  with my cpa's cost, and is deducted,,, am I posta gather and keep all the governments wanted info for free?   Not here. They want the return they gotta pay for it in my time spent. Additional 1099's also.

According to the IRS he value of your own time is not a deductible business expense (if you want I can look it up for you).

Well it certainly is if you are a S-Corporation and you pay yourself to do it. But then you have to pay taxes on that too.

[terrifictimbersllc]

but when it  comes to the years end when I file my federal tax's   I calculate the time spent/wasted on  my gathering this tax return paperwork/info at $50 an hour and it goes right into the cost  with my cpa's cost, and is deducted,,, am I posta gather and keep all the governments wanted info for free?   Not here. They want the return they gotta pay for it in my time spent. Additional 1099's also.

According to the IRS he value of your own time is not a deductible business expense (if you want I can look it up for you).

Well it certainly is if you are a S-Corporation and you pay yourself to do it. But then you have to pay taxes on that too.

In that case it's the money paid, not the value of the time that is deductible. 

[logwalker]

When you pay it to yourself you then have to pay the self-employment tax which is almost 15%. After that come the income tax for whatever tax bracket you are in.

Joe

[Qweaver]

For the $110,000 I have spent on equipment, tools and sheds to run my sawmill business, I could have bought 4000 shares of AT&T which pays a $6720 yearly dividend.   On the equipment and tools I must pay sales tax in WV and a yearly 1.77% property tax on their depreciated value.  I must also pay capital gains tax to both the feds and the state for any profits I make...plus I have to work many hours to make a $6720 profit...think of the overhead.  I'm far better off to just stick the money in the stock market, pay the capital gains and do very little work to make the money.   This is just stupid what the state and feds are doing to small business.  I asked a CPA how anyone made money in WV and he said "everyone cheats".  Why do we let them do this to us?

[Randy88]

Thats the need for the 1099's is because everyone cheats and they are trying to get their tax money out of you so they make you do more paperwork for them so they have a checks and balances system that they can plug into a computer to see if someone lied on their taxes and didn't report some of their income.   As far why do we let them do this to us its simple, the public voted them there and since theres more with a hand out than there is putting food and money into their hands there no need to change whats working in their favor.   Don't forget you paid taxes on the materials in the buildings as they were put up and now get to pay property taxes on them forever and oh yea, don't foreget anytime they want they can raise the values which increases the property taxes you get to pay,  I call it a stupid tax that never ends and since I've got a lot of buildings I've got to be the stupidiest of all.   

[stormyweatherman]

i feel your pain randy,

just got the tax bill for my place in maine.  land and a building the size of a 2 car garage.  no well, no septic.  they raised the value on the land and the building (even though about 6 properties changed hands in the whole county last year), thereby 'justifying' a 20 percent increase in the total property tax over last year.  its not that much money in absolute dollars but its a huge increase proportionately and we get ZERO services.  its a privately maintained road, the public roads are horrible, and there isn't even anywhere to take trash.  we carry in, carry out, and burn paper. 

they're doing the same thing back here at home too.  local govts. are broke or going under and they're just slamming people with property tax increases.  we are far from out of the woods in this country.  :-\

[Ron Wenrich]

There's a push to do away with property taxes in PA.  They want to broaden the sales tax base and tax that.  I don't like it since my work is all business to business, but it would be subject to a 6% sales tax.  My state income tax is at 3.2%.  Its a flat tax for every income class.  So, essentially those folks that are doing subcontracting work would have their income taxed at a higher rate. 

The representative who dreamed up this scheme said to just charge your client more money.  Besides, it would put more of a tax burden on the poorer class of people, which many politicians couldn't afford in votes.  Its pretty regressive.  Somehow doctors got exempted from the tax scheme.  I think they call that the old folks vote.

[ladylake]

 Back in 1983 when I moved to my place property taxes were $450 a year and the average factory wage was around $7 to $8 a hour. Last year my property taxes hit $3000 and tha average factory wage is $12 to $14 a hour. It doesn't add up too good, government is out of control with the current politactions whipping it on. If the wages were keeping up with the property tax rate increase the average factory worker would be making about $50 a hour now. Were headed downhill fast with no brakes.   Steve

[woodman58]

One thing that has not been brought up is that we are going to have to get tax information (social security #, tax ID #) from anybody we pay $600 or more to. Some people may not be willing to give out this info to somebody they don't know. If you sell a car to someone they may ask for you social security # to claim on there taxes. Are you will to give your # to a complete stanger?  That means that we are going to have more of a chance to have our identity stolen. People don't always dispose of paper work by shredding it. This also means that I will have to get tax #'s from Home Depot, Lowes, etc.of witch I do alot of buisness with. I just see alot more hassel on our end.

[Randy88]

You want an example of how that all works and why this is all being done I'll give you a life lesson on the real world implications of exactly why and how.   I'll try to be nonbias on the whole deal but I'll explain how the scam they are trying to prevent is done.   Now remember this scam goes back to a simplier time with virtually no new modern computerization and when these 1099's were not needed and they didn't have a means to track income or expense.   So if you hired john doe and he did 1000 dollars worth of work and decided not to report it the government didn't know.   So its a long post and I'm sorry for that and I'll try to write it down so the average person can understand it.   

There was a wealthy medical professional in this case that did just what I'm writing and it could have been basicallly anyone.    He'd use bogus purchases to offset his income to lower his tax bill every year and this is how he pulled it off.   He'd aquire copies of purchases an individual made throughout the year by screening checks coming through a small town bank he was a main stockholder of to the point he virtually owned it and was also a director on so he knew where the purchases were made from and the amounts of those purchases, he'd then go there and buy something small like a garden tiller or something equally dumb so he had receit from the company so he could then duplicate the letterhead and purchase order [any college kid with a little time and imagination could do this] and he'd go get numbers off machines to get a serial number to go with the bogus purchase order [off the dealer lot where he bought the garden tiller] and then all he needed was a cancelled check to match the bogus sale so he'd get a stamper from the bank and stamp his bogus checks with to make them look like they'd gone through the banking system and the scam was complete.    He had fake purchases he could either expense out or depreciate out as fast as possible and the paperwork and cancelled check to match.   Now if he was ever audited they never actually went and looked at his business to see if the serial numbers matches let alone if the equipmet was there at all, they just look at numbers so its just a paperwork trail that led nowhere but his taxes.    This worked fine until they came out with 1099's and when you bought something greater than whatever value they would have to send in a 1099 to the individual who did the work or purchased the stuff from but only those that filled them out and actually sent them in the first place, most didn't so he worked around the system and found those that ignored the 1099 thing and kept it up for a while longer.   Now once the machines were depreciated out they went off the tax sheets and all he'd have to tell anyone looking was I gave it away because its not worth anything anymore  or I junked it out and thats not against the law and that ended that conversation and it was done unless they needed to investigate further but if alls in order and passed any irs scrutiney then who would or why.   

Now your going to ask how do I know any of this and thats the rest of the story as they say, you could say I was a victim of serial number theft so to speak and a victim of circumstances that converged that were unrelated.   Ever been told you were in the wrong place at the wrong time before, here one for example.    I'd been farming with this guy for years and not knowing anything about his scam didn't know what to look for and nothing was out of the ordinary unitl his death and his heirs came looking for equipment and had serial numbers and paperwork and tried to have me arrested for equipment theft [my equipment] and this is when the whole story broke, apparently he forgot to mention to his kids he'd been doing this and they actually thought they were intitiled to all those purchases and could sell them.   Well when push came to shove one of us had the real paperwork and one didn't and since I had the real cancelled checks and they had gone through a bank and the dealers I'd bought them from did back my story it was all over for the heirs.  Now this was also the same time some twit doing 1099's made a mistake on the amounts and also the EIN numbers and they were sent to me and that triggered a red flag on my taxes as being wrong so we got to deal with trying to straighted it all out and prove my taxes were right and it was just a mistake on the typest part filling out the 1099's so we asked a lot of questions at the time and this is the story my tax person and legal personal I hired to get me out of this mess and prove my stuff was mine had pieced together.    Now he might have had more or different scams to avoid taxes but I'd have no way to know about them this is the ony one I was indirectly involved in.

So the 1099 thing is only a way for the government to control fraud and tax evasion by having both parties send paperwork and have a receit so to speak and both parties need to match or close anyhow and if they don't they can put all this stuff into a computer and find out who's lying and go after those individuals.   Its really a simple system until someone makes a mistake or an omission and then they know who is was and for what amount becasue they have all the numbers to use like EIN's or social security etc.   

Now for the last question, did anything happen to the guy that evaded taxes, not that my people could find out, see he'd gifted his property away years ago to his kids and kept lifetime free use of it get all the income off of it and they had to pay the property taxes and legal things like that so as I was told the government couldn't go after the land and since he was dead and all his wealth was previously distributed they had nothing to go after or figured since he did pay tax just not enough tax that was good enough.   So to my knowledge he walked away scamming hundreds of thousands of dollars if not millions of not paying tax and got away with it, now I'd say his kids might be under a lot of irs scruitiny for the rest of their lives but thats just a perk.    Do I agree with all the paperwork needed, no but I do see a reason for it but on the other hand is it my job to help the irs do thier job, I don't think so and am I upset over the fact this guy got away with what he did, he evaded more in taxes than I'll ever owe and thats not right either because he could afford to pay it he just didn't want to pay it, there is a difference.   So for me it is a double edged sword I know what it could prevent but I don't want to help them do their job or have to spend the time and money either.

[Gary_C]

It looks like congress has take notice and will probably do something about the problem, sometime after they stop fighting over the details.

Paperwork nightmare: A struggle to fix new law

As some have noted, this new law would be an enormous cost to businesses and individuals and would most likely swamp the IRS computers with the paperwork overload. So unless something unexpected happens, forget that law, it's history as it should be.

But since the congress has already spent the estimated $19 billion this measure was expected to bring in, they are looking for some way to replace this money they will "lose." So hang on to your wallet, they are going to get that money fron somewhere else.   

I recall once when congress did something like this before. Years ago in a budget balancing bill, congress helped to balance the budget by changing the farmers exemption from federal tax on diesel fuel used off road for farming and force the farmers to pay the tax when purchased and then file quarterly refund requests. So in essence, congress intended to balance the budget that year by borrowing money from farmers for three plus months.

And then in the end, for the government to give up this new found money, they made a change in depreciation so as to raise their taxes. So this new thing will be gone soon, we just do not know what it will cost us yet.

Welcome to the world of government accounting. If our government was a business, they would be thrown in jail for fraud.

[junkhound]

It seems, that all of the above post are correct and valid. One overlooked detail of the increase in 1099's, is the governments payroll and equipment increases to handle all of this. Which will undoubtedly be larger than what the additional 1099's will bring in, so they will have to raise some other taxes to cover the increased payroll. IMO

Junkhound

[bandmiller2]

Mayby we should choose our represenitives the way the way jurors are chosen, for one term only, mayby some common sence for a change. Frank C.

[John S]

One term and no pension, let them steal as much as they can while still in office.

[just_sawing]

My opiare under attack and it is going to get worseon is that the small bussiness is a threat to union controlled large bussiness.